MidOcean Energy, an EIG-backed liquefied natural gas (LNG) company, has secured more than $1.2bn in equity financing, surpassing its initial cover target of $1bn.
The funding round features a $500m commitment from Idemitsu Kosan, a Japanese energy company with operations across the sector, alongside $790m from a mix of new and existing investors.
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MidOcean Energy aims to continue its capital-raising efforts with the intention of reaching a cumulative target of up to $2bn in funding from new investors.
The company has reported ongoing momentum, with further investments under documentation, and noted that it is attracting interest from parties looking for long-term involvement in the LNG sector.
Factors cited include sustained demand fundamentals, limited supply growth, and LNG’s role in supporting both energy security and the wider energy transition.
MidOcean Energy has participated in LNG projects in regions such as South America, Canada and Australia, pursuing a business model that balances cost considerations with emissions reduction. The company has stakes in the LNG Canada, Pluto LNG, Gorgon LNG, QCLNG and Peru LNG projects.
MidOcean Energy CEO De la Rey Venter said: “We are delighted to welcome Idemitsu Kosan as a strategic investor in MidOcean. The success of this equity raise is a strong validation of MidOcean’s strategy, asset base and transaction pipeline.
“The level of participation from both new investors and our existing shareholder base signals confidence in our strategy and our company. We look forward to welcoming more investors into the company as we progress toward final close.”
Idemitsu Kosan engages in natural gas development activities in Vietnam and provides supply to power plants linked to data centres in North America.
The company regards this investment as an opportunity to enter the global LNG market through collaboration with MidOcean Energy and recognises the partnership as strategic due to the latter’s sector expertise.
Idemitsu Kosan noted that completion of the investment is contingent on receiving all necessary regulatory approvals under applicable competition laws.
The company said that LNG produces fewer carbon emissions than oil or coal when burned, which has contributed to its growing use as an energy source during the shift toward lower-carbon options.
Furthermore, Idemitsu Kosan identified LNG’s geographically diverse supply regions as factors that enhance energy security and reduce procurement risks.
MidOcean Energy recently signed definitive agreements with JERA to acquire an additional 0.417% interest in the Gorgon LNG project offshore Western Australia.
